Users are increasingly withdrawing Bitcoin from centralized exchanges in order to store them offlinewallets or make money on DeFi protocols.
According to Glassnode, the amountbitcoins held in wallets of centralized exchanges have dropped by 20% over the past 12 months. Investors accumulate BTC and withdraw it to cold wallets, creating a shortage.
Hodlwaves indicator that tracks datethe last movement of bitcoins also indicates increased accumulation. According to Hodlwaves, over 57% of the total BTC supply has not moved in over a year. About a third of all BTC have not moved in over 5 years.
Increased popularity of DEX and DeFi protocolsalso leads to an outflow of funds from exchangers. The total locked value (TVL) of Wrapped Bitcoin, which can be used with DeFi platforms, has increased by $1 billion over the past week.
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Based on materialscointelegraph.com
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